Real Estate and Investment Property Exit Planning
Anyone who has been in the position of having to sell real estate that you earned a profit from knows that this means one thing: a tax headache. If the proper conditions are met, you may qualify for a 1031 exchange. This allows you to reinvest the proceeds of this sale in another real estate asset of the same type. You defer the gains until later – reaping more control over the timing and the tax rate that applies later.
While the 1031 exchange is something that many people know about, what few are aware of is that there are other ways to complete the benefits of an exchange instead of directly purchasing a replacement property. This may be of great interest for those who aren’t necessarily in the mood to go through the process of buying (and managing) another property. In situations like this, if suitable, it is useful to consider a Delaware Statutory Trust, or DST. A DST allows you to take a passive, fractional stake in a trust that holds the title to a couple, or several, properties.
As investment property exit professionals, we are well versed in 1031 exchanges and DST (Delaware Statutory Trust) funds as well as other options that many may not be familiar with. We work with real estate investors and their financial intermediaries such as attorneys and accountants who wish to structure non-traditional exit planning solutions.